Pfizer (PFE.US) is struggling to grow: predicts that next year's revenue will remain flat, and is frequently looking to buy popular drugs

The Zhitong Finance App learned that Pfizer (PFE.US) predicts that sales growth next year will be minimal or no as the company strives to update its popular pharmaceutical product line through a series of expensive acquisitions. Pfizer said in a statement on Tuesday that 2026 revenue is expected to be between US$59.5 billion and US$62.5 billion, which is roughly in line with Wall Street's expectations. This year's sales are expected to be $62 billion, in line with the scope of the company's guidance in early November. The company expects adjusted earnings per share to be between $2.80 and $3 next year.

Pfizer CEO Albert Bourla is facing a critical moment to reinvigorate Pfizer as demand for COVID-19 vaccines and treatments that drove the company's sales surge a few years ago is fading. Pfizer shares have dropped more than 50% from their high during the pandemic. Revenue from COVID-related products is still falling; Pfizer predicts sales of these products will drop by about $1.5 billion to $5 billion next year.

Various circumstances forced the pharmaceutical company to take large-scale cost-cutting measures. The company plans to save over $7 billion by 2027, most of which is expected to be completed next year. Although Pfizer has made some recent progress, including reaching a landmark drug pricing agreement with the Trump administration, it is reported that Pfizer is one of two pharmaceutical companies that expect sales to decline in the 2030s. By the close of trading on Monday, the stock had remained essentially flat since this year.

Furthermore, the price cut for Eliquis, Pfizer's best-selling blood thinner, will take effect next year, after the drug was included in the Biden-era “Inflation Reduction Act” negotiation list. Meanwhile, Pfizer's key drugs, such as the pneumonia vaccine Prevnar and the heart disease drug Vyndaqel, are facing increasing competition from competitors.

This prompted Bourla to seek acquisition opportunities to help Pfizer expand its drug development pipeline. The company recently won an intense bid battle with Novo Nordisk (NVO.US) to successfully acquire obesity drug manufacturer Metsera.

Pfizer spent $10 billion to acquire Metsera, giving it access to a range of promising novel obesity drugs in this rapidly growing field, where it had been difficult for Pfizer to break into this field. However, Metsera's drugs are still in the early stages of development, which means they may take years to reach the market.

BMO capital markets analyst Evan Seigerman stated in a report prior to the release of the new performance guidelines that investment in R&D “is critical to evaluating Pfizer's performance over the next year” in light of the deal. The company plans to reinvest the $500 million saved in research and development, according to a presentation released on Tuesday. Pfizer said that next year's adjusted R&D spending will be between US$10.5 billion and US$11.5 billion.

Bourla has made a series of deals to try to supplement Pfizer's product line, including the $43 billion acquisition of anti-cancer drug manufacturer Seagen at the end of 2023. So far, however, these initiatives have not been successful enough. As of early November, Wall Street analysts predicted that Pfizer's sales would remain flat or decline until at least 2031.